The Tax Publishers2020 TaxPub(DT) 4836 (Mum-Trib)

INCOME TAX ACT, 1961

Section 143(3) Section 153C

Although AO of searched person and the other person, i.e., the assessee was the same, satisfaction was recorded by AO for invoking the provisions of section 153C on 21-12-2010, the said date would be deemed to be the date of receiving documents by AO. Thus, year of search would be financial year 2010-11 relevant to assessment year 2011-12. Accordingly, block period of six years for search assessment under section 153C would comprise of assessment years 2005-06 to 2010-11. Under these facts, assessment for assessment year 2010-11 being part of block assessment period should have been under section 153A read with section 153C and, therefore, assessment order for the concerned year suffered from legal infirmity.

Sesrch assessment - Validity - Determination of block period - AO of searched person and assessee by same

During search in case of M/s 'O' conducted on 20-8-2009, certain documents pertaining to assessee were also seized. Consequently, notice under section 153C was issued to the assessee on 21-12-2010. AO made block assessment for assessment years 2004-05 to 2009-10 and for concerned assessment year, i.e., 2010-11, the AO considered it as year of search and made assessment under regular provisions. Assessee assailed inclusion of assessment year 2004-05 in the period of block assessment and submitted that since satisfaction under section 153C was recorded in financial year 2010-11, the said financial year would be the year of search and consequently, the block of six assessment years would be assessment year 2005-06 to assessment year 2010-11. Held: Date of initiation of search under section. 132 or requisition under section 132A in case of other person would be the date of receiving books of account or documents or assets seized or requisition by AO having jurisdiction over such other person. In the instant case, although AO of searched person and the other person , i.e., the assessee was the same, satisfaction was recorded by AO for invoking the provisions of section 153C on 21-12-2010, the said date would be deemed to be the date of receiving documents by AO. Thus, year of search would be financial year 2010-11 relevant to assessment year 2011-12. Accordingly, block period of six years for search assessment under section 153C would comprise of assessment years 2005-06 to 2010-11. Under these facts, assessment for assessment year 2010-11 being part of block assessment period should have been under section 153A read with section 153C and, therefore, assessment order for the concerned year suffered from legal infirmity.

Relied:CIT v. Jasjit Singh, Income Tax Appeal No. 337 of 2015 for assessment year 2009-10, decided on 2-1-2018, EON Auto Industries Pvt. Ltd. v. DCIT, ITA No. 3179/Del/2013, assessment year 2008-09, decided on 28-11-2017 : 2017 TaxPub(DT) 5479 (Del-Trib).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2010-11



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